U.S. Small Business Optimism Improves Slightlyby Tom Moeller May 10, 2016

The National Federation of Independent Business reported that its Small
Business Optimism Index increased 1.1% during April to 93.6 following declines
in three of the four prior months.

An improved 8% of firms reported that now was a good time to expand the
business, but expectations for the overall economy remained dour. One percent of
firms expected higher real sales in six months, roughly the lowest in five months.

Employment prospects brightened slightly. Eleven percent of firms expected to
increase employment, the most in three months; however, a higher 46% of
respondents found few or no qualified candidates to fill job openings, up from
March's 41% low. A sharply increased 29% of firms had positions they were not
able to fill right now. A greater 24% of firms raised worker compensation over
the last twelve months, but a lessened 15% were expecting to raise it in the
next three months.

Small businesses' pricing ability improved as a lessened 1% of firms were
lowering prices. Expectations about the future ability to raise prices, however,
eased as a fewer 16% of firms were planning to raise them.

Credit remained slightly more difficult to get as 5% reported trouble, up
from 3% at the low. A stable 31% of firms felt satisfied that their borrowing
needs had been filled in the last three months.

A lessened 21% of firms indicated that taxes were the single most important
problem and a reduced 20% reported government requirements were the largest
single problem. A stable 12% felt challenged by the quality of labor. A reduced
11% of firms indicated that poor sales were the largest single problem. An
increased 10% reported insurance cost & availability as the largest problem.
A stable 8% reported competition from large businesses as the largest problem,
and a fairly stable 6% reported the cost of labor was the biggest problem.
Inflation was indicated by a steady 2% of respondents.

Roughly 24 million small businesses exist in the U.S. and they create 80% of
all new jobs. The typical NFIB member employs 10 people and reports gross sales
of about $500,000 a year. The NFIB figures can be found in Haver's SURVEYS
database.